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Hot Wireless News:
Centennial Cellular Says It's for Sale and Reports Loss
GTE Posts Loss, Ameritech Net Drops; Gains Reported in Phone Lines, Services
Sprint PCS Seeks Partners to Extend Coverage in Small Cities, Rural Regions
Motorola Inc.'s Puerto Rico Factory to Close
Saudi Prince Buys Stake in Teledesic
Ericsson Wins $200 Million Triton PCS Supply Contract
Bell Canada International Wins Cellular Phone License in Brazil
OliMan Lifts Interest in Italian Phone Operator
Three Groups Bid for Italy's Third Cell Phone License
China Telecom (Hong Kong) Poised for Cellular Buy
Britain's House of Lords Makes Pagers Available to Peers
WinStar Launches Fixed Wireless Multipoint Metropolitan Area Network in Washington, D.C.
Flaw Is Found in Digital Wireless Phone System
Cryptographers Announce Break in Authentication Encryption for GSM Phones
Quick Wireless LANs Aid Disaster Efforts
SBC Continues to Build Wireless Empire
Milwaukee One of the Five Most Competitive Wireless Markets
Bell Atlantic Commits to Increase Stake in Omnitel, Italy's Fast Growing Wireless Venture
Subsidy Locks Come to Cellular Phones
XYPOINT Names Vice President of Network Operations; Entrepreneur to Oversee Delivery of Wireless Location-based Services
Authentix Network, Inc. Appoints David L. Smith to Newly Created Position of Executive Vice President
CBIS Announces Contract with Bell Atlantic to Provide Billing and Subscriber Management for Direct Broadcast Satellite Services

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Nortel Reaches Milestone -- One Million Wireless Subscribers in Colombia
Frost & Sullivan Study: Market for Public Local Wireline & Wireless Voice Services Thrown Open by Telecommunications Act of 1996
Sears Honors BellSouth Wireless Data As "Innovation Source of the Year"
Centennial Cellular Says It's for Sale and Reports Loss

New York Times (04/15/98) P. D4 -- Centennial Cellular, which run and invests in wireless phone networks in the United States and Puerto Rico, reports that it is making itself available to interested buyers. The New Canaan, Conn.-based company's stock soared to a 52-week high yesterday, before ending the day up 29 percent at $31.25. Centennial explains that its board of directors has opted to consider "strategic alternatives" and it has retained the services of investment bank Donaldson, Lufkin & Jenrette. The company posted a net loss of $9.7 million, or 54 cents a share, for its fiscal third quarter ending Feb. 28. Centennial reported a loss of $9.5 million, or 50 cents a share, in the same period a year ago.

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GTE Posts Loss, Ameritech Net Drops; Gains Reported in Phone Lines, Services

Wall Street Journal (04/15/98) P. B8; Mehta, Stephanie N. -- GTE has reported a first-quarter loss resulting from previously announced one-time charges. In addition, Ameritech has posted lower earnings from charges on a cost-reducing plan that includes cutting its workforce by 5,000. The cuts will come from Ameritech's wireless and security monitoring units. The restructuring charge and another one-time charge reduced net income for Ameritech to $492 million from $536 million. Revenue for Ameritech totaled $4.13 billion for the quarter, up 7.1 percent from a year earlier. GTE reports a $178 million loss for the quarter on revenue of $5.89 billion, up 11 percent from the year before. Ameritech reported a 4.3 percent growth in access lines while GTE reported 8 percent line growth. BancAmerica Robertson Stephens analyst Tim Horan and other analysts are uncertain whether growth in the companies' cellular units will continue. For example, GTE posted subscriber growth of 13 percent for the quarter, but it had to reduce prices to compete with the rates of its competitors. Because of this, revenue increased only 5 percent to $650 million.

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Sprint PCS Seeks Partners to Extend Coverage in Small Cities, Rural Regions

Wireless Today (04/14/98) Vol. 2, No. 72, -- Sprint PCS, having rolled out its CDMA service in major U.S. markets, is now trying to increase its presence in smaller cities and rural regions. Similar to AT&T Wireless, Sprint PCS wants to arrange a series of partnerships aimed at exploiting the range of its major trading area (MTA) licenses. Sprint PCS is considering rural telcos, utilities, and PCS licensees, including C-Block ones, as partners. In contrast to AT&T's strategy of giving spectrum in exchange for an equity stake, Sprint PCS wants to team up with more established companies that have access to their own telecom infrastructure or a local retail distribution network. These partners will run systems under the Sprint PCS brand that will join with Sprint PCS' operations to offer seamless coverage. Sprint PCS would receive 8 percent of the revenue raised by the partnership. The partners would have to construct their own networks, but they could take advantage of the economies of scale normally available to Sprint PCS in its handsets and infrastructure deals.

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Motorola Inc.'s Puerto Rico Factory to Close

Wall Street Journal (04/15/98) P. B4 -- Motorola intends to shut down its pager factory in Vega Baja, Puerto Rico, due to poor global pager sales. The company says that it will let go or transfer roughly 1,500 workers at the factory. Last week, Motorola posted a 45 decline in first-quarter earnings and CEO Christopher Galvin projected that second-quarter results will also be below Wall Street expectations. The company noted a variety of problems, including a 25 percent decline in pager sales to $693 million. Pager orders fell 21 percent.

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Saudi Prince Buys Stake in Teledesic

New York Times (04/15/98) P. D4 -- Prince Walid bin Talal of Saudi Arabia has purchased a 13.7 percent stake in Teledesic for $200 million, broadening his technology investments, a spokesperson for the billionaire prince says. Teledesic plans to build a network to provide Internet access, video conferencing and voice services, starting in 2002. The $9 billion network will consist of 288 satellites. Before Prince Walid's investment, Bill Gates, Microsoft chairman, and Craig McCaw, cellular phone trailblazer, each owned one third of Teledesic.

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Ericsson Wins $200 Million Triton PCS Supply Contract

Reuters (04/14/98) -- Ericsson's North American unit has reached a five-year deal worth $200 million to provide Triton PCS--AT&T's first licensed affiliate--with wireless network equipment. Ericsson will provide and deploy base stations and mobile switching center equipment in Virginia, North Carolina, South Carolina, and northern Georgia. Triton will construct and run a digital wireless network that will extend AT&T's digital wireless coverage across Virginia, the Carolinas, Georgia, and the Baltimore/Washington, D.C. area. Triton's network will use D-AMPS 1900 equipment, based on TDMA IS-136 technology.

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Bell Canada International Wins Cellular Phone License in Brazil

CNews (04/14/98) -- Telet, a consortium in which Bell Canada International owns a 20 percent stake, has won a cellular license for the state of Rio Grande do Sul in southern Brazil--one of the country's wealthier regions--with a bid of $334.5 million. The company hopes to start offering service later this year. Another group involving BCI--Americel--won a license for Brazil's central-west region in July, and it has gained 45,000 subscribers since initiating its service in November. Telet also involves Telesystem International Wireless, Citibank, and Brazilian partners. BCI, which was spun off from telecommunications giant BCE last year to concentrate on the international wireless market, has moved quickly into the Latin American market. Last month, BCI purchased a majority interest in Colombian cellular carrier Occel for roughly $425 million.

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OliMan Lifts Interest in Italian Phone Operator

Financial Times (04/15/98) P. 18; Blitz, James -- OliMan, a partnership between Olivetti and Mannesmann, yesterday increased its stake in Omnitel Pronto Italia, Italy's second mobile phone carrier, to around 40 percent as part of a complicated deal involving the acquisition of shares from Sweden's Telia. In a deal valued at about $480 million, Olivetti, Mannesmann, and Bell Atlantic purchased Telia's 9.66 percent stake in Omnitel Sistemi Radiocellulari, the company that controls 70 percent of Omnitel Pronto Italia. The OliMan venture obtained two-thirds of Telia's shares, or 6.43 percent of Omnitel Sistemi, while Bell Atlantic acquired the remaining one-third. The deal raises Olivetti's stake in Omnitel Pronto from 26.6 percent to around 30 percent, while Mannesmann's share climbs to 18.3 percent and Bell Atlantic's increases to 19.7 percent.

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Three Groups Bid for Italy's Third Cell Phone License

Reuters (04/15/98) -- Three groups filed applications for Italy's third mobile phone license before the Wednesday morning deadline, according to a government source. The groups were Picienne, a group headed by Mediaset and British Telecommunications; Wind, involving Italian utility Enel, Deutsche Telekom, and France Telecom; and an unnamed consortium that includes BCE's Bell Canada International, Hong Kong-based Distacom, and Italy's state highway operator Autostrade. The government is expected to reveal the winner by May 31, and it may offer a fourth license by the end of the year. There are currently two operators in the Italian market: Telecom Italia Mobile and Omnitel.

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China Telecom (Hong Kong) Poised for Cellular Buy

Financial Times (04/15/98) P. 19; Lucas, Louise -- China Telecom (Hong Kong)--the listed division of China's dominant telecommunications carrier--is about to buy a cellular system in Jiangsu, one of the largest cellular networks in mainland China. The deal needs regulatory and government approval. The company, which started trading in New York and Hong Kong last October, currently operates two cellular networks in Guangdong and Zhejiang provinces. The systems had a combined total of 3.4 million subscribers at the end of 1997, a rise of 67 percent over the year before. China Telecom saw larger growth in Zhejiang, where its subscriber base climbed 90 percent. Jiangsu is China's third largest cellular market, with 880,000 subscribers, but it holds great potential as its penetration rate is a mere 1.2 percent, one-third the level in Guangdong province.

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Britain's House of Lords Makes Pagers Available to Peers

Sunday Times Online (04/14/98); "Lords Go A'Bleeping Into World of High Technology;" Landale, James -- Britain's House of Lord's has decided to make pagers available to peers in an effort to keep them up to date with their messages. Currently, peers receive typed messages, which are circulated by doorkeepers, who search for the peers in the chamber or bars. Roughly 20 peers have applied for pagers, which are being leased from Motorola, with money for the fees coming from existing Lords funds. Use of the pagers during House debates will not be permitted. A proposal to make mobile phones available to peers was soundly rejected.


WinStar Launches Fixed Wireless Multipoint Metropolitan Area Network in Washington, D.C.

NEW YORK, April 13, 1998 - WinStar Communications Inc., announced today that it has activated a full-duplex ATM-based, point-to-multipoint (PMP) broadband, fixed wireless network carrying voice, data and video services in Washington, D.C.

The network incorporates two hub sites, expanding to three shortly, and is providing high-speed telecommunications network services over multiple sectors to four end-user buildings. Traffic is being routed through an ATM over-the-air interface and integrated with WinStar's ATM metropolitan area backbone network and its Class 5 local switched network.

According to the company, WinStar's Washington, D.C. network is demonstrating all the features of a fully networked PMP infrastructure, including bi-directional communications on a bandwidth-on-demand basis.

"Our PMP network carries with it very significant reductions in capital costs enabling WinStar to extend our network to many more customers, expanding our addressable market to include those customers located in buildings as small as 20,000 square feet, and some portion of the residential market. The combination of the reduced cost and the relative ease of installation will allow the integration of voice, data and video communications services onto one network allowing an affordable, high speed alternative to the higher cost, legacy system of the existing monopoly carriers," said William J. Rouhana, Chairman and CEO of WinStar. "This confirms our ability to initially deploy our multipoint network in the second half of 1998, and moves us toward full national implementation of this network over the course of 1999 and beyond."

Financial community contact: Frank Jepson, SVP, Capital Market Relations, 212/584-4021. Press contact: Beth-Ellen Keyes, 212/584-4098.

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Flaw Is Found in Digital Wireless Phone System

Wall Street Journal (04/13/98) P. A3; "Flaw Is Found in Digital Phone System That May Let Hackers Get Free Service" Sandberg, Jared -- Computer security engineers say they have discovered a weakness in GSM, the most widely used digital cellular phone technology in the world. Some are worried that the flaw could eventually be exploited to enable hackers to get free service by pretending to be legitimate subscribers. A software developer and two graduate students say they can obtain important security information from GSM cellular phones. Before the revelation, GSM technology was though to be essentially invulnerable to tampering. The security information is held in a "subscriber identification module," or SIM card, a device similar to a credit card that is plugged into digital cellular phones and tells the network the identity of the user. The engineers claim they can copy the card and load its information onto a computer or handheld device. Connecting the computer to a phone makes the network believe that it is dealing with a legitimate user. Still, some industry observers do not think that the flaw will have a major impact. The three experts have yet to figure out how to capture the information from the airwaves, as can be done with analog cellular phones. GSM fraud would require hackers to have an SIM card in their possession, according to the engineers.

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Cryptographers Announce Break in Authentication Encryption for GSM Phones

WASHINGTON, D.C., April 13, 1998 - A software developer and two graduate students announced April 11 in San Francisco that they have been able to extract encrypted information from the "smart cards" used in GSM phones.

The Cellular Telecommunications Industry Association makes the following points about this announcement:

  • What the cryptographers are announcing is a form of cloning, which is illegal under federal law.

  • They are making no claims that they are able to listen to the content of phone conversations, but only that they can decipher "authentication" information, which is used to protect phones from being cloned.

  • They are making no claims that they can decode over-the-air signals. They must actually have the handset and smart cards to carry out this operation. In other words, phones would literally have to be in-hand in order to extract this information.

  • For several years now, education institutions and scientific laboratories have demonstrated the capability to extract data from and copy smart cards. None of these groups' "discoveries" have had a significant impact on the security of any wireless phone technology. This is because each attack was based on the concept that the criminal would be able to steal the smart card out of the phone, take it to a lab, illegally duplicate the information on the smart card, and then return the card to the phone, all before the real subscriber attempted to make another call or noticed that the phone was not operating. This is highly unlikely.

  • There is a major difference between the capability of trained cryptographers to obtain this information using computers and the practical reality of actually being able to carry out such an illegal operation on a large scale. In other words, there seems to be no practical threat to consumer security.

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Quick Wireless LANs Aid Disaster Efforts

Communications News (04/98) Vol. 35, No. 4, P. 91 -- The American Red Cross Disaster Service often needs to quickly establish locations for storing food, supplies, and equipment for disaster victims. These operations often face difficult conditions, such as storms, power outages, and floods that create logistical nightmares. The agency recently decided to drop its paper-based inventory system for a automated solution. The Red Cross was looking for a mobile, dependable system that used hardware that could operate for six to eight hours on batteries in the event of a power outage. So the organization opted for a system of handheld wireless notebooks PCs for its staff and volunteers. The Proxim wireless network monitors a variety of goods, everything from food and water to cell phones and fax machines. It also handles warehouse data and sends data to a central logistics database. Richard Hoffman, a systems programmer with the Red Cross, call adding a notebook to the network "a fairly simple matter," and he says future upgrades will be "inexpensive and easy."

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SBC Continues to Build Wireless Empire

San Antonio Business Journal Online (04/06/98) -- The merger of SBC Communications and Pacific Telesis--finalized about a year ago--has produced one of the biggest wireless carriers in the country, combining SBC's analog holdings with PacTel's digital network. In the past year, the combined companies have gained another roughly 1 million new wireless customers, raising the company's subscriber base to 5.5 million. The Gartner Group says the company is the third biggest U.S. carrier. After the merger, SBC formed a holding company called SBC Wireless for its wireless operations, including the cellular carriers Southwestern Bell Wireless and Southwestern Bell Mobile Systems, and the PCS carriers Pacific Bell Mobile Services and Nevada Bell Mobile Services. One challenge SBC encountered after the merger was the integration of two large wireless networks, a task complicated by SBC's use of TDMA technology. PacTel operates GSM systems. But Chris Rinnie, a SBC Wireless vice president, says that the different technologies have not been much of an issue because of the local focus of SBC's wireless units. Still, Gartner Group's Bob Egan thinks that PacTel's two wireless units, PacBell and Nevada Bell Mobile Services, could become acquisition targets for GSM carriers. Egan believes that 1999 might see a number of GSM concerns "become chess pieces that are moved around," with incumbent cellular carriers "making all of the moves." SBC is also active in cellular markets in Mexico, Taiwan, France, South Korea, and South Africa.

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Milwaukee One of the Five Most Competitive Wireless Markets

Business Journal of Milwaukee Online (04/06/98); "Wireless in Milwaukee;" Millard, Pete -- A wireless pricing survey by Goldman Sachs Global Research of the top 50 markets ranks Milwaukee as one of the five most competitive U.S. cities. The CTIA says that the wireless phone penetration rate in Milwaukee is roughly 22 percent, compared with the national rate of 19 percent. Carol Damit, director of marketing with Ameritech, says that the number of wireless carriers in Milwaukee could climb from two a couple a years ago to seven or eight by the end of 1998. Currently, Ameritech, Cellular One, Nextel, PrimeCo Personal Communications, and Sprint PCS offer service in Milwaukee, and PCS licensee Indus hopes to introduce service this summer. Ameritech and Cellular One intend to launch digital services in Milwaukee this year. In 1997, the price of packages fell by as much as 45 percent. Cellular One reduced its rates for 120 minutes by 40 percent from $49.95 to $29.95, and PrimeCo lowered its price for 100 minutes 43 percent, from $35 to $20. The Goldman Sachs survey found that 500 minutes of Ameritech service costs $155.50 in Chicago, around 50 percent more than the cost in Milwaukee, $104.95. And 500 minutes on PrimeCo's network is 22 percent less expensive in Milwaukee than in Chicago.

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Bell Atlantic Commits to Increase Stake in Omnitel, Italy's Fast Growing Wireless Venture

Will acquire share of Telia stake for approximately $163 million

PHILADELPHIA, Pa., April 14, 1998 -- Bell Atlantic today announced plans to increase its ownership in Omnitel Pronto Italia (Omnitel), the second largest GSM operator in Italy and one of the fastest-growing wireless startups in the world.

Bell Atlantic will purchase an additional 2.26 percent of Omnitel for approximately U.S.$163 million.

Telia today announced it has sold its 6.77 percent stake in Omnitel, with the remaining shares going to an Olivetti-Mannesman joint venture called OliMan. Bell Atlantic, one of the largest shareholders in Omnitel, will own 19.7 percent upon completion of the transaction.

The principal owners of Omnitel Pronto Italia are Bell Atlantic, Cellular Communications International (CCIL), and the Olivetti-Mannesman joint venture.

On March 27 Omnitel announced it added more than 500,000 customers since the start of 1998, and more than three million customers since beginning service 27 months ago.

The company ended its 1997 fiscal year with US$1.07 billion in revenues, a more than 140 percent increase over the previous year. The company turned profitable in the latter half of 1997, well ahead of expectations.

During 1997 Omnitel continued to increase its market share, signing 40 percent of all new cellular customers during the fourth quarter alone. Total Italian market share grew to more than 20 percent by the end of the year.

During 1997, Omnitel invested more than US$400 million in its networks, bringing the company's overall investment to more than US$2.25 billion since 1994. Network deployment accelerated through 1997, extending coverage to most of Italy's territory and nearly all of its population.

Bell Atlantic is one of the world's largest wireless communications companies, with domestic operations in 25 states and international investments spanning Latin America, Europe and the Pacific Rim. For information on our global operations, visit http://www.bellatlantic.com/worldwide.

Contact: Steve Fleischer, 215-963-6822, steve.fleischer@bellatlantic.com or Brian Wood, 908-306-7901, brian.r.wood@bellatlantic.com

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Subsidy Locks Come to Cellular Phones

TWICE (03/30/98) Vol. 13, No. 8, P. 43 -- Cellular carriers might soon follow PCS operators in offering phones that only work on their networks. Several new NEC models, including a TDMA, a CDMA, an enhanced analog, and a tri-mode cellular/PCS phone, will contain subsidy locks. A NEC spokeswoman says that subsidy locks might make carriers less hesitant to provide phones without contract commitments. But subsidy locks could make inventory management more difficult for retailers active in multiple markets that are covered by several carriers. NEC says that no available analog phones incorporate subsidy locks, while another vendor does offer a digital cellular model with the capacity to be subsidy-locked.

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XYPOINT Names Vice President of Network Operations; Entrepreneur to Oversee Delivery of Wireless Location-based Services

SEATTLE, Wash., April 14, 1998--XYPOINT Corp., a leader in the emerging field of using wireless technology to locate mobile people and objects, has appointed John Clark as vice president of operations.

Clark will be responsible for delivering XYPOINT's wireless location-based services, such as wireless enhanced 9-1-1, to wireless carriers and other customers. He will oversee all service-delivery and quality-assurance aspects of XYPOINT's national network, including system operation of an SS7-based data center, data management and customer service.

Before joining XYPOINT, Clark spent 14 years starting and operating technology-based businesses. Most recently, he founded Toll Free Cellular, the nation's first provider of #800 (pound sign 800) free wireless calling, and was a key member of the team that raised more than $22 million in financing for the company.

"John's solid network experience will help us provide innovative, high-quality network services to our customers," said Ken Arneson, XYPOINT's president and chief executive officer.

At Toll Free Cellular, Clark conceived of the idea of free wireless calling in 1991. He worked with wireless engineers and initiated relationships with wireless carriers nationwide, signing contracts with AT&T Wireless Services and US West Cellular. He was responsible for building Toll Free Cellular's operations, deployment and new product development groups.

Previously, he founded and was president of Sof-Tek, a network and data communications consulting firm. Sof-Tek provided strategic planning counsel to growth companies, specializing in the integration of technology with existing operations to create systems that successfully managed rapid growth.

Clark graduated magna cum laude from Western Washington University and holds bachelor's degrees in business administration and computer science.

XYPOINT, a privately held company based in Seattle, is a leading designer, developer and marketer of wireless intelligent network services, providing location-related information services to the wireless industry. The XYPOINT name, pronounced "zy-point," refers to locating a point using the X and Y coordinates on a map. XYPOINT's Web site is www.xypoint.com.

CONTACT: Nyhus Communications LLC for XYPOINT Roger Nyhus, 206/720-1739; roger@nyhus.com

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Authentix Network, Inc. Appoints David L. Smith to Newly Created Position of Executive Vice President

Long time wireless communications executive adds depth of experience to new management team.

Tucson, Ariz., April 14, 1998. Authentix Network Inc., a leading provider of enhanced roaming solutions for wireless service providers, has appointed David L. Smith to the newly created position of Executive Vice President.

Smith, with over 25 years of experience in the communications industry is the former President of CellTech, Inc. a Houston-based personal communications billing and management information company. He has also served as Group Vice President of InterDigital Communications Corporation, a leader in wireless local loop development, and as President of North American Cellular Communications, an applicant in markets 31 to 305. North American Cellular also coordinated the non-wireline start-up cellular resale operation in Tennessee, Alabama and Florida. Mr. Smith was also involved as an applicant and recipient in markets 31 to 121 non-wireline cellular settlements.

Mr. Smith co-founded Collins & Smith, a national public relations firm specializing in political consulting, cellular and cable TV. Collins & Smith's clients included many of the top ten cable TV companies. The firm also assisted the Republican National Committee and the White House political affairs office. While chairman of Collins & Smith, Mr. Smith co-founded C.M.R.S, a cellular engineering firm, C.C.I., an international engineering company, and Lauer and Associates, a cellular research firm.

Additionally, Mr. Smith has held positions as a sportscaster and executive for KETV, Omaha, Nebraska, and began his career with the B.F. Goodrich company, advancing to the position of District Manager Retail.

"Dave and I have worked together on several occasions over the years and I'm delighted he's joined the Authentix management team," says William W. Erdman, President and CEO of Authentix. "His extensive experience with wireless startups and his strong management skills will certainly help ensure the future success of this enterprise. As Vice President Administration, Dave will be responsible for the company's strategic planning, sales and marketing and administration."

Smith's appointment is the second major key executive designation announced by Authentix in the past two weeks. Mr. Erdman took over the reigns of the wireless roaming solution developer as President and CEO in March. Mal Gurian will continue with his responsibilities as Chairman of Authentix.

Authentix Network Inc., formed in 1995, is a provider of worldwide enhanced roaming services and fraud solutions to the wireless industry. A cited pioneer in Roamer Verification Reinstatement (RVR) technology, Authentix develops solutions that eliminate roaming fraud, enhance the roaming process and deliver anywhere-anytime communications.

Authentix Contact: Dick Cahill, 520-320-4167

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CBIS Announces Contract with Bell Atlantic to Provide Billing and Subscriber Management for Direct Broadcast Satellite Services

CINCINNATI, Ohio; April 13, 1998 -- CBIS [R] today announced a contract to provide billing and subscriber management for Bell Atlantic's offering of direct broadcast satellite (DBS) services. Under terms of the five-year contract, CBIS will provide these services in its state-of-the-art data center environment.

On March 2, Bell Atlantic announced a multi-year marketing and distribution agreement with DIRECTV, and also announced an agreement in principle to offer services from U.S. Satellite Broadcasting. A service launch is expected by this summer in two major markets, and CBIS will provide the billing and subscriber management.

"As we prepare for market launch, Bell Atlantic is pleased to have access to the experience, resources, and commitment of CBIS to help us reach our goals, " said Richard E. Beville, president of Bell Atlantic Video Services. "Over the past several months we looked at a number of billing and subscriber management systems, but in the end there was a clear winner - WIZARD from CBIS. Bell Atlantic is excited about our DBS plans, and we know we've chosen a top-flight teammate in CBIS."

"As Bell Atlantic offers its customers a vast array of entertainment and news networks, sports, and pay-per-view movies, the CBIS billing and subscriber management solution set will offer Bell Atlantic a powerful, one-stop system for subscriber management and transaction processing," said Robert J. Marino, CBIS president and CEO. "Not only does the CBIS solution set provide the tools for managing information and for developing key strategies to grow the subscriber base, it leverages CBIS's unsurpassed billing expertise and value-added customer support to enable communications providers such as Bell Atlantic to provide responsive solutions and improve revenue generation."

This is the first major agreement in which CBIS will utilize WIZARD billing and subscriber management software. Under terms of a co-marketing agreement announced last August with Wiztec Solutions Ltd. (NASDAQ: WIZTF), CBIS has exclusive rights to market and operate the WIZARD solution in North America, and non-exclusive rights to market it worldwide. CBIS has also purchased nearly 20 percent of Wiztec.

CBIS's use of WIZARD addresses the unique demands of the DBS industry, enabling efficient handling of the digital satellite technology utilized to simultaneously broadcast hundreds of channels and events to an ever-growing audience over an expansive area. WIZARD is designed to work compatibly with all phases of the satellite business, providing the most feature-rich DBS functionality in the industry such as interfaces to support distributors, dealers and retail outlets; and support for conditional access and tracking, distribution, and authorization of Smart Cards.

ABOUT BELL ATLANTIC

Bell Atlantic (NYSE: BEL) -- formed through the merger of Bell Atlantic and NYNEX -- is at the forefront of the new communications and information industry. With 40.5 million telephone access lines and six million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 21 countries. Bell Atlantic news releases, executive speeches, news media contacts and other useful information are available at Bell Atlantic's News Center on the World Wide Web (http://www.ba.com ).

ABOUT CBIS

CBIS is the global leader in the provision and management of billing and customer support solutions for the communications industry. Our unique focus on meeting our clients' business needs enables us to provide unsurpassed support and business benefits for wireless, wireline, cable TV, Internet, and emerging communications services.

Our data centers in Cincinnati and Orlando and client installations around the world produce more than 340 million bills each year. CBIS Business Builders programs and unrivaled experience and expertise in client support make us the ideal business partner and the world leader in billing and customer support.

CBIS is a Cincinnati Bell company [NYSE:CSN] -- an Equal Employment Opportunity/Affirmative Action Employer committed to a diverse work force. We're on the web at http://www.cbis.com

CBIS is a registered service mark of Cincinnati Bell Information Systems Inc. DIRECTV is a trademark of DIRECTV, Inc., a unit of Hughes Electronics Corporation. USSB is a service mark of United States Satellite Broadcasting Company, Inc.

FOR MORE INFORMATION: John Pratt, Public Relations Manager, (513) 397-7777 or (800) 327-3900. E-Mail: jpratt@cinbell.com or Chris Perry, Edelman Worldwide, 312-240-2688, cperry@edelman.com

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